SARASOTA COUNTY – 2018 looks great, but an economist warns a recession is coming.
This year should be another solid year for economic growth in the Manatee-Sarasota region and nationwide, economist Henry “Hank” Fishkind says. A downturn looms though, he warns, and the economic expansion now in its record 87th month could turn to a recession by 2020.
Fishkind says the savings in the new tax reform package will go only so far to spur consumer spending. According to the Herald-Tribune, he also believes the tax stimulus is ill timed. While tax reform will add 0.5% to GDP growth this year and next, it also will cause interest rates to rise higher and faster, and the government will need to finance $1 trillion more debt over ten years.
“Ultimately, this will slow growth and lead to a recession,” Fishkind said.